Pearland ISD adopts balanced FY2025–26 budget after public hearing on proposed tax rate

The Pearland Independent School District Board of Trustees held a public hearing on June 24, 2025, about the district's proposed fiscal year 2025–26 budget and proposed tax rate, then adopted the budget as presented.

District Chief Financial staff presented the budget and tax-rate assumptions required by Texas Education Code 44.004(f) and 44.002, saying the maintenance and operations (M&O) tax rate being proposed is 0.7676 per $100 of assessed value and the interest-and-sinking (I&S) rate is 0.3481 per $100. The district reported a net taxable value projection of $11,900,000,000 and projected student enrollment of 20,668 with average daily attendance set at 95% for budgeting purposes.

The presentation showed projected general-fund revenues of about $230 million and expenditures of about $223 million, producing a projected general-fund surplus of roughly $6 million; the district also presented a combined total budget (general, food services and debt service) of roughly $284 million in revenues and $278 million in expenditures with a projected surplus of about $5.8 million. Administrators said the district plans to dedicate roughly half of an expected surplus to the capital renewal plan (CRP) to fund roofs, HVAC and bus purchases and to preserve fund balance for emergencies.

Superintendent Dr. Berger told the board the assumptions in the budget include the substitute-pay increase on the agenda and that the budget includes payroll and compensation commitments approved by the board, including planned general pay increases. "We are being very fiscally responsible and conservative," Dr. Berger said during the presentation.

Trustees asked clarifying questions about fund-balance categories and cash availability; staff said the reported 141 days in fund balance reflects multiple categories (assigned and unassigned) and is not all immediately spendable cash. The business office noted contingency dollars were consolidated into one function to make tracking clearer and moved remaining contingency into CRP funding and the projected surplus for the fiscal year.

After the required hearing, Trustee Scheffler moved to approve the FY2025–26 budget as presented; Trustee Murphy seconded. The board voted 7–0 to approve the budget.

The district noted final certified property values will be available July 25 and that tax-rate adoption remains scheduled for the board’s August meeting, per the public-education timetable: the budget is adopted now and the tax rate is adopted later in August. Staff said the presented tax rate is a ceiling for this notice; the district may adopt a lower rate but cannot adopt a higher rate without republishing notice and holding another hearing.

The board closed the hearing at 5:18 p.m. and took the budget approval vote later in the meeting.